The dollar traded within half a cent of a one-year low against the euro on speculation the global economic recovery is gathering strength, encouraging investors to buy higher-yielding assets.
The U.S. currency also weakened versus the yen as economists forecast the Federal Reserve will keep its benchmark interest rate between zero and 0.25 percent today and signal it intends to hold down borrowing costs.
New Zealand's dollar climbed to a 13-month high after a government report showed the economy unexpectedly grew for the first time in six quarters.
The dollar traded at $1.4793 per euro as of 8:07 a.m. in London from $1.4790 in New York yesterday, after earlier falling to $1.4842, the lowest level since Sept. 22, 2008. The U.S. currency dropped to 90.94 yen, from 91.10. The yen strengthened to 134.51 per euro, from 134.76.
New Zealand's dollar, the kiwi, rose as high as 73.12 U.S. cents, the strongest since Aug. 4, 2008, before trading up 0.8 percent at 72.45 cents after Statistics New Zealand said gross domestic product grew 0.1 percent in the three months to June 30, following a 0.8 percent drop in the first quarter. A Bloomberg News survey of economists forecast a 0.2 percent contraction.
Corn dropped as a decline in crude oil reduced the appeal of the grain, which can be processed into ethanol to stretch gasoline supplies, and on expectations that the U.S. will produce a bumper harvest. Corn for December delivery fell to $3.2325 a bushel in after-hours electronic trading on the Chicago Board of Trade at 2:04 p.m. Singapore time, after rallying 3.1 percent yesterday.
Resistance & support
EURUSD GBPUSD USDJPY USDCHF
1.4810 1.6500 92.80 1.0380
1.4770 1.6410 91.90 1.0340
1.4730 1.6340 91.00 1.0280
1.4620 1.6280 90.80 1.0230
1.4560 1.6190 90.00 1.0190
Economic calendar
Date Time
(GMT) Currency Impact Actual Forecast Previous
Wed
Sep 23 6:45am EUR
French Consumer Spending m/m -1.2% 0.3% 1.4%
6:45am EUR
French Consumer Spending m/m -1.0% 0.2% -1.2%
7:00am EUR
French Flash Manufacturing PMI 52.5 51.4 50.2
7:00am EUR
French Flash Services PMI 52.2 50.1 48.9
7:30am EUR
German Flash Manufacturing PMI 49.6 50.9 49.0
7:30am EUR
German Flash Services PMI 52.2 54.0 54.1
8:00am EUR
Flash Manufacturing PMI 49.0 49.8 47.9
8:00am EUR
Flash Services PMI 50.6 50.5 49.5
8:30am GBP
MPC Meeting Minutes 0-0-9 0-0-9 0-0-9
8:30am GBP
BBA Mortgage Approvals 38.1K 41.1K 38.2K
9:00am EUR
Industrial New Orders m/m 2.6% 2.1% 3.1%
11:35am CAD
Gov Council Member Longworth Speaks
12:10pm GBP
MPC Member Barker Speaks
1:00pm EUR
Belgium NBB Business Climate -16.2 -18.2
1:30pm USD
Treasury Sec Geithner Speaks
2:30pm USD
Crude Oil Inventories -1.4M -4.7M
6:15pm USD
FOMC Statement
6:15pm USD
Federal Funds Rate <0.25% <0.25%
10:00pm NZD
Westpac Consumer Sentiment 106.0
11:50pm JPY
Trade Balance 0.18T 0.19T
